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Lengthy negotiations between the DfE and York City Council have resulted in an increased flat rate of £4 per hour for providers taking part in the 30-hours free childcare scheme being piloted in September this year.

 

The government had of £3.38 and £3.95 for the first and second 15 hours respectively; figures which saw earlier this month.

 

The DfE has now confirmed that providers will receive £4 per hour across the entire 30-hours for all eligible three-and four-year-olds.

 

Neil Leitch, chief executive at the Pre-school Learning Alliance, said that he welcomes the fact that the government has listened to providers in York.

 

“Clear and honest dialogue between providers and the Department for Education will be vital to the success of the extended scheme, and so, in this regard, this is positive news,” Neil said.

 

However, he criticised the DfE’s initial proposal saying that the reason behind the offering still remains unclear, and raises questions about the department’s overall understanding of the childcare market.

 

“Any scheme of this size and importance must be both well-planned and well-executed if it is to succeed – a ‘making it up as we go along’ approach simply isn’t good enough,” Neil said.

 

“We hope that the situation in York has highlighted to government the value of listening to providers on the frontline and that it will look to work with the sector more closely going forward to ensure that the scheme has the best possible chance of success in the long term.”

 

While the increase may be good news for the 30-hours pilot, those providers that are taking on children who are only eligible for the existing 15-hours will not see a funding increase.

 

They will continue to receive the existing hourly rate of £3.38, which has been frozen for the past four years.

 

“This completely contradicts the DfE’s promise to address historic underfunding issues, and will put those providers whose families don’t meet the wage criteria for the extended offer at a significant disadvantage,” Neil said.

 

“Such an approach is unacceptable and we urge the department to reconsider this approach ahead of full roll-out next year.”